Anil Ambani in Rs 1,100-cr waiver row

Anil Ambani in Rs 1,100-cr waiver row

By / Business News / Sunday, 14 April 2019 06:50

New Delhi
The controversy over the purchase of 36 Rafale fighter jets from France has taken a new turn following an article published in French daily claimed that Anil Ambani’s France-based company (not the same dealing with Dassault Aviation) was given a tax waiver of 143.7 million euros .

The waiver came in October 2015, six months after PM Narendra Modi announced the Rafale deal in April 2015,  Le Monde reported. Anil Ambani’s Reliance Defence is an offset partner of Dassault in the Rafale deal. Reacting to the report by the French daily, Reliance Communications said the tax demands were completely unsustainable and illegal, and denied any “favouritism or gain from settlement”.

The Ministry of Defence said the period of tax concession did not relate “even remotely” to the Rafale deal.Anil Ambani’s France-based  ‘Reliance Flag Atlantic France’ deals in under-sea cabling which carries telephone and internet traffic. French tax authorities, after a probe, found the company liable to pay 60 million euros in taxes for the period between 2007 and 2010. Reliance offered to pay 7.6 million euros as a settlement.

“France has cancelled a tax recovery of a total amount of 143.7 million euros, yet claimed for years, in favour of a French company belonging to Reliance Communications,” it reported. The French daily cited an auditor’s report of January 30, 2015, saying Reliance Flag Atlantic France is subject to two tax adjustments. It claimed that the parent company of the French company of Anil Ambani, Reliance Globalcom Ltd, is domiciled in Bermuda, which is on the blacklist of tax havens in the EU.

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Hum Hindustani

Hum Hindustani

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